During past budget shortfalls, aircraft have been the target of securing additional revenues through the aggressive collection of sales, use, and property tax.
The portability of aircraft can make it easy to avoid sales tax on the purchase by closing in a jurisdiction with little or no tax, or an applicable exemption, but that is only the first step. Use tax generally becomes a significant hurdle in the state or states in which the aircraft is based.
The Tax Cuts and Jobs Act has provided an incredible opportunity for business aircraft owners to purchase aircraft, both pre-owned and new, to begin or strengthen their fleets. Aircraft placed in service in 2018, and the next four years moving forward, even in the final days of the year, may be eligible for 100% bonus depreciation – a deduction of the full aircraft purchase price – provided that the aircraft meets the qualified business use requirements outlined in the statute and regulations.
The recent modifications to the tax code under the Tax Cuts and Jobs Act (TCJA) represent the most significant modifications in more than three decades, according to the experts at the Advocate Consulting Legal Group (Booth 3272). While the bill was introduced as an effort to simplify the tax code, it has presented many complex questions and uncertainties, along with tax opportunities for businesses to invest in general aviation aircraft.
One of the more substantial pieces of the legislation involves allowing 100 percent bonus depreciation for qualifying new and preowned aircraft,
» Read more about: New Tax Laws Mean Confusion to Some, Opportunity for Others »
Title: Tax Change Helps Executives Afford Pricier Planes
Author: Rachel Feintzeig – Sept. 12, 2018
Source: Wall Street Journal
The recent changes to the tax code are giving business executives a new perk: the opportunity to deduct the entirety of a corporate-jet purchase.
President Trump signed more than 100 changes to the U.S. tax code into law at the end of last year. Among them: The price of a new or used airplane purchased by a company can be a 100% write-off against its earnings.
» Read more about: Advocate Shareholder quoted as Aviation Tax Expert by the Wall Street Journal »
A watershed moment for pilots of light aircraft occurred on July 15, 2016, when the President signed into law a major easing of medical certification requirements for light-aircraft pilots. This change was part of a periodic FAA Extension Act, and has major implications for pilots of small aircraft, who are relieved of some burdensome obligations of medical license compliance. The law instructs the FAA to issue regulations within 180 days implementing the new rules, and does not have practical effect until these regulations are finalized.
» Read more about: CONGRESS EASES MEDICAL REQUIREMENTS FOR PILOTS OF SMALL AIRCRAFT »